Medigate Raises $30M in Series B Financing to Meet Rising Demand for Healthcare IoT Security
Medigate, the leader in IoT and medical device security and asset management, today announced the completion of a $30M Series B round led by new investor Partech, a global technology investor respected for its track record in scaling technology innovators globally. Existing investors YL Ventures, U.S. Venture Partners (USVP) and Blumberg Capital also participated in the round and were joined by Maor Investments. This brings Medigate's total funding to $50M, including a Series A round completed in 2019.
Medigate will use the investment to execute its vision of becoming healthcare's security and clinical analytics company. As the volume and velocity of data generated from IoT and medical devices surges, healthcare organizations are expanding their digital strategies beyond their walls to include technology like wearable devices designed for patient monitoring and mobile devices used for telehealth. Providing a single, comprehensive solution for them will not only help reinforce their security stance from the core to the edge, it will provide analytics that will help drive operational efficiencies, organizational effectiveness, reduction in CapEx and OpEx, improve patient experiences, and much more.
"Partech is a very sophisticated technology investor. With their backing, we will be able to quickly expand to help healthcare organizations around the world experience the same ROI as those in the United States," said Jonathan Langer, CEO and Co-Founder of Medigate. "We are very appreciative of the continued support we receive from our investors at YL Ventures, USVP and Blumberg Capital and are excited to add Partech and Maor Investments to our team as we enter in the next phase of our growth."
Gartner has forecasted that the number of connected devices will grow to 25 billion by 2021. According to Healthcare Informatics Research, more than 40% of those will be used in the healthcare industry by the end of this year to improve patient outcomes. The explosion of connected devices is dramatically increasing cybersecurity and medical device management challenges for healthcare delivery organizations.
Medigate's solution addresses patient safety and privacy by automatically locating, identifying and managing the security posture of all devices connected to the network, in addition to powering clinical engineering with the device data they've never had available before to manage their fleet of medical devices. Medigate has continued its tremendous growth by demonstrating how comprehensive device data leads to new ROI and cost savings in healthcare delivery organizations around the world, from the largest health systems to specialty hospitals.
As proof of Medigate's impact on the industry, the company was recently named a winner of the SINET 16 Innovator Award, where a panel of dozens of leading industry experts selected the 16 most innovative and compelling companies from more than one hundred emerging cybersecurity providers. This recognition follows a strong 2020 where Medigate was named as a "Market Leader" in Forrester's (News - Alert) New Wave Report, one of Forbes' "Top 20 IoT Startups to Watch" and the winner of Frost and Sullivan's "Enabling Technology Leadership Award for Medical Device Security."
"Medigates innovative approach to device visibility, security and management is giving hospitals confidence they can secure and manage the devices they're connecting to their network," said Jean Sini, general partner at Partech. "Their growth over the last two years is evidence that securing unmanaged devices is top of mind for healthcare leaders."
Yoav Leitersdorf, managing partner at YL Ventures, shared, "Medigate is powered by an extraordinary team that has outperformed even our highest expectations. It's been a privilege to work alongside them since their founding three years ago and we are thrilled to continue to be a part of their journey. This latest milestone is testament to their vision of protecting every healthcare organization from cyberattacks."
"Medigate's ability to deliver a single source of device truth for executives across a healthcare organization has advanced its growth trajectory," said Jacques Benkoski, partner at USVP. "We are excited to help with their global advancement and adoption."
"We've believed from the beginning that Medigate's unique approach to their solution and partner ecosystem has and will continue to position them as the solution of choice for healthcare, validated by its rapid adoption by leading health systems and hospitals across the United States," said Bruce Taragin, managing director at Blumberg Capital.
Medigate is the industry's first and leading dedicated medical device security and asset management platform, enabling providers to deliver secure, connected care. Medigate fuses the knowledge and understanding of medical workflow and device identity and protocols with the reality of today's cybersecurity threats. With Medigate, hospital networks can safely operate all medical devices on their network, enabling deployment of existing and new devices to patients while ensuring privacy and safety. For more information visit: https://www.medigate.io/.
Partech is a global investment firm with offices in San Francisco, Paris, Berlin and Dakar. It brings together capital, operational experience and strategic support for entrepreneurs at seed, venture and growth stages across multiple continents, with over €1.3B investment capacity. Investments range from $200K to $50M in a wide range of technologies and businesses for enterprises and consumers, from software, digital brands and services, to hardware and deep tech across all major industries. Companies backed by Partech have completed more than 20 initial public offerings and more than 50 strategic exits above $100M. Current portfolio: partechpartners.com/companies.
About YL Ventures
YL Ventures funds and supports brilliant Israeli tech entrepreneurs from seed to lead. With headquarters in Silicon Valley and satellite offices in Tel Aviv, YL Ventures manages $270 million and specializes in cybersecurity. YL Ventures accelerates the evolution of portfolio companies via strategic advice and U.S.-based operational execution, leveraging a powerful network of CISOs and global industry leaders. The firm's track record includes successful, high-profile portfolio company acquisitions by major corporations including Palo Alto Networks, Microsoft, CA (News - Alert) and Proofpoint. Learn more at www.ylventures.com.
About U.S. Venture Partners
U.S. Venture Partners (USVP) is a leading Silicon Valley venture capital firm, partnering with entrepreneurs to transform their ideas into world-changing companies. The USVP team consists of former entrepreneurs, technologists, corporate executives and financial professionals who assist with strategy, scaling, team building, product development and business development. USVP is based in Menlo Park, California. For more information visit www.usvp.com.
About Blumberg Capital
Blumberg Capital is an early-stage venture capital firm that partners with passionate entrepreneurs to innovate and build successful technology companies. The firm specializes in leading Seed and Series A rounds collaborating with angel investors, other venture capital firms and strategic partners. The Blumberg Capital team are active investors and board members - operating as an extension of the entrepreneurs' network. Blumberg Capital is headquartered in San Francisco with team members in Tel Aviv and New York. For more information visit www.blumbergcapital.com.
About Maor Investments
Maor Investments is a Luxembourg-based co-investment fund focused on revenue-generating Israeli-related tech companies with an established proof of concept. Maor joins top-tier venture capital funds and strategic investors to back strong Israeli entrepreneurs in their growth stage. Thanks to their vast European network, Maor's teams serve as door openers with leading European customers and partners. For more information visit https://maorinvestments.com/.
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